QUHUO Ltd 6-K, filed Aug 28, 2024
QUHUO Ltd (QH)
About this 6-K
QUHUO Ltd filed this 6-K on August 28, 2024.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of
Commission File Number 001- 39354
(Exact name of registrant as specified in its charter)
3rd Floor, Block A, Tonghui Building
No. 1132 Huihe South Street, Chaoyang District
Beijing, People’s Republic of China
(+86-10) 5923 6208
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Incorporation by Reference
The Form 6-K and the exhibit to the Form 6-K, including any amendment and report filed for the purpose of updating such document, are incorporated by reference into the registration statement on Form F-3 of Quhuo Limited (File No. 333-273087), and shall be a part thereof from the date on which the Form 6-K is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Quhuo Limited | ||||
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| ||||
Date: | August 28, 2024 | | By: | /s/ Leslie Yu | |
| | | | Name: | Leslie Yu |
| | | Title: | Chairman and Chief Executive Officer | |
EXHIBIT INDEX
Exhibit Number |
| Description |
99.1 | | Unaudited Condensed Consolidated Interim Financial Statements |
99.2 | | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
99.3 | | |
101.INS | | Inline XBRL Instance Document - this instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
101.SCH | | Inline XBRL Taxonomy Extension Schema |
101.CAL | | Inline XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | | Inline XBRL Taxonomy Extension Definition Linkbase |
101.LAB | | Inline XBRL Taxonomy Extension Label Linkbase |
101.PRE | | Inline XBRL Taxonomy Extension Presentation Linkbase |
104 | | Cover Page Interactive Data File (embedded within the Inline IXBRL document) |
Exhibit 99.1
QUHUO LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
| | | | As of December 31, | | As of June 30, | ||
|
| Notes |
| 2023 |
| 2024 |
| 2024 |
| | | | RMB | | RMB | | US$ |
ASSETS: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash | | |
| |
| |
| |
Restricted cash | | |
| |
| |
| |
Short-term investments |
| 4 |
| |
| |
| |
Accounts receivable, net |
| 5 |
| |
| |
| |
Prepayments and other current assets |
| |
| |
| |
| |
| 13 |
| |
| — |
| — | |
Total current assets | | |
| |
| |
| |
Non-current assets: |
| |
| |
| |
| |
Property and equipment, net |
| |
| |
| |
| |
Right-of-use assets, net |
| |
| |
| |
| |
Intangible assets, net |
| |
| |
| |
| |
Goodwill |
| |
| |
| |
| |
Deferred tax assets |
| |
| |
| |
| |
Other non-current assets |
| 7 |
| |
| |
| |
Total non-current assets | | |
| |
| |
| |
Total assets | | |
| |
| |
| |
LIABILITIES AND SHAREHOLDERS’ EQUITY: |
| |
| |
| |
| |
Current liabilities (including current liabilities of the consolidated VIE without recourse to the primary beneficiary of RMB |
| |
| |
| |
| |
Accounts payable | | |
| |
| |
| |
Accrued expenses and other current liabilities |
| 8 |
| |
| |
| |
Short-term debt |
| 9 |
| |
| |
| |
Short-term lease liabilities |
| |
| |
| |
| |
Amounts due to related party |
| 13 |
| — |
| |
| |
Total current liabilities | | |
| |
| |
| |
Non-current liabilities (including non-current liabilities of the consolidated VIE without recourse to the primary beneficiary of RMB |
|
|
| |
| |
| |
Long-term debt |
| 9 |
| |
| |
| |
Long-term lease liabilities |
| |
| |
| |
| |
Deferred tax liabilities |
| |
| |
| |
| |
Other non-current liabilities |
| |
| |
| |
| |
Total non-current liabilities | | |
| |
| |
| |
Total liabilities | | |
| |
| |
| |
Commitments and contingencies |
| 12 |
|
|
| |
| |
1
QUHUO LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
|
| | | As of December 31, | | As of June 30, | ||
|
| Notes |
| 2023 |
| 2024 |
| 2024 |
| | | | RMB |
| RMB | | US$ |
Shareholders’ equity: | |
|
|
| |
|
|
|
Ordinary shares ((US$ | | |
| | | |
| |
Additional paid-in capital | | |
| | | |
| |
Statutory reserve | | | | — | | | | |
Accumulated deficit | | |
| ( | | ( |
| ( |
Accumulated other comprehensive loss | | |
| ( | | ( |
| ( |
Total Quhuo Limited shareholders’ equity | | |
| | | |
| |
Non-controlling interests | | |
| ( | | |
| |
Total shareholders’ equity | | |
| | | |
| |
Total liabilities and shareholders’ equity | | |
| | | |
| |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
2
QUHUO LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
| | | | Six Months Ended June 30, | ||||
|
| Notes |
| 2023 |
| 2024 |
| 2024 |
| | | | RMB | | RMB | | US$ |
Revenues |
| 3 |
| |
| |
| |
Cost of revenues | | |
| ( |
| ( |
| ( |
General and administrative | | |
| ( |
| ( |
| ( |
Research and development | | |
| ( |
| ( |
| ( |
Gain on disposal of assets, net | | |
| |
| |
| |
Operating loss | | |
| ( |
| ( |
| ( |
Interest income | | |
| |
| |
| |
Interest expense | | |
| ( |
| ( |
| ( |
Other income/(loss), net | | |
| |
| ( |
| ( |
Loss before income tax | | |
| ( |
| ( |
| ( |
Income tax benefit | | 10 |
| |
| |
| |
Net loss | | |
| ( |
| ( |
| ( |
Net income attributable to non-controlling interests | | |
| ( |
| ( |
| ( |
Net loss attributable to ordinary shareholders of Quhuo Limited | | |
| ( |
| ( |
| ( |
Loss per share: | | 11 |
| |
| |
| |
Basic |
| |
| ( |
| ( |
| ( |
Diluted | | |
| ( |
| ( |
| ( |
Shares used in loss per share computation: | | 11 |
| |
| |
| |
Basic | | |
| |
| |
| |
Diluted |
| |
| |
| |
| |
Other comprehensive loss: | | |
| |
| |
| |
Foreign currency translation adjustment | | |
| |
| |
| |
Comprehensive loss |
| | | ( |
| ( |
| ( |
Comprehensive income attributable to non-controlling interests | | |
| ( |
| ( |
| ( |
Comprehensive loss attributable to ordinary shareholders of Quhuo Limited | | |
| ( |
| ( |
| ( |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
3
QUHUO LIMITED
UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
|
| Number of |
| |
| |
| |
| |
| Accumulated |
| |
| |
| |
| | outstanding | | | | Additional | | | | | | other | | Quhuo Limited | | | | Total |
| | ordinary | | Ordinary | | paid-in | | Statutory | | Accumulated | | comprehensive | | shareholders’ | | Non-controlling | | shareholders’ |
| | shares | | shares | | capital | | reserve | | deficit | | loss * | | equity | | interests | | equity |
| | | | RMB | | RMB | | RMB | | RMB | | RMB | | RMB | | RMB | | RMB |
Balance as of December 31, 2022 |
| |
| |
| | | — |
| ( |
| ( |
| |
| ( |
| |
Net income |
| — |
| — |
| — | | — |
| |
| — |
| |
| |
| |
Other comprehensive income |
| — |
| — |
| — | | — |
| — |
| |
| |
| — |
| |
Exercise of employee share options |
| |
| — |
| — | | — |
| — |
| — |
| — |
| — |
| — |
Share-based compensation |
| — |
| — |
| ( | | — |
| — |
| — |
| ( |
| — |
| ( |
Balance as of December 31, 2023 |
| |
| |
| | | — |
| ( |
| ( |
| |
| ( |
| |
Net loss |
| — |
| — |
| — | | — |
| ( |
| — |
| ( |
| |
| ( |
Other comprehensive income |
| — |
| — |
| — | | — |
| — |
| |
| |
| — |
| |
Issuance of ordinary shares |
| |
| |
| | | — |
| — |
| — |
| |
| — |
| |
Extracting surplus reserve |
| — |
| — |
| — | | |
| ( |
| — |
| — |
| — |
| — |
Balance as of June 30, 2024 |
| |
| |
| | | |
| ( |
| ( |
| |
| |
| |
Balance as of June 30, 2024 in US$ |
| — |
| |
| | | |
| ( |
| ( |
|
| |
| |
* |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
4
QUHUO LIMITED
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
| | | | Six Months Ended June 30, | ||||
|
| Notes |
| 2023 |
| 2024 |
| 2024 |
| | | | RMB | | RMB | | US$ |
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net loss | | |
| ( |
| ( |
| ( |
Adjustments to reconcile net loss to net cash (used in)/ provided by operating activities: | | |
| |
| |
| |
Depreciation | | |
| |
| |
| |
Amortization | | |
| |
| |
| |
Deferred income taxes | | |
| ( |
| ( |
| ( |
Share-based compensation |
| |
| |
| — |
| — |
Gain on disposals of intangible assets |
| |
| ( |
| ( |
| ( |
Changes in fair value of short-term investment | | |
| ( |
| |
| |
Others | | |
| ( |
| |
| |
Changes in operating assets and liabilities: | | |
| |
| |
| |
Amounts due from related party | | | | — | | | | |
Amounts due to related party | | |
| — |
| |
| |
Accounts receivable | | |
| |
| |
| |
Prepayments and other current assets | | |
| ( |
| ( |
| ( |
Other non-current assets | | | | ( | | | | |
Accounts payable | | |
| |
| ( |
| ( |
Accrued expenses and other current liabilities | | |
| ( |
| ( |
| ( |
Lease liabilities | | |
| ( |
| |
| |
Income taxes payable | | |
| ( |
| |
| |
Other non-current liabilities | | |
| ( |
| |
| |
Net cash used in operating activities | | | | ( | | ( | | ( |
Cash flows from investing activities | | | | | | | | |
Purchase of short-term investments | | |
| ( |
| ( |
| ( |
Proceeds from sales of short-term investments | | |
| |
| |
| |
Proceeds from refund of short-term investments | | |
| |
| |
| |
Other investing activities | | |
| |
| |
| |
Purchase of property and equipment | | |
| ( |
| ( |
| ( |
Acquisitions of intangible assets | | |
| ( |
| ( |
| ( |
Proceeds from disposals of intangible assets | | | | | | | | |
Net cash provided by investing activities | | |
| |
| |
| |
Cash flows from financing activities | | | | | | | | |
Proceeds from short-term debt | | | | | | | | |
Repayments of short-term debt | | | | ( | | ( | | ( |
Repayments of long-term debt | | | | | | ( | | ( |
Proceeds from issuance | | | | — | | | | |
Net cash provided by financing activities | | | | | | | | |
Effect of exchange rate changes on cash and restricted cash | | | | | | | | |
Net increase/(decrease) in cash and restricted cash | | | | | | ( | | ( |
Cash and restricted cash, at the beginning of year | | | | | | | | |
Cash and restricted cash, at the end of year | | | | | | | | |
Interest paid | | | | | | | | |
Income tax paid | | | | | | | | |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
5
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
1.Organization, Consolidation and Principal Activities
Quhuo Limited (the “Company”, and where appropriate, the term “Company” also refers to its subsidiaries, variable interest entity, and subsidiaries of the variable interest entity as a whole) is an exempt company incorporated in the Cayman Islands with limited liability under the laws of the Cayman Islands on June 13, 2019. The Company, through its subsidiaries, variable interest entity, and subsidiaries of the variable interest entity, are principally engaged in providing end-to-end operational solutions to on-demand consumer service businesses in industries, including food and grocery delivery, bike-sharing, ride-hailing, housekeeping in the People’s Republic of China (the “PRC”). Quhuo Limited, is a holding company with no substantive operations of its own.
The Company commenced operations through Beijing Quhuo Technology Co., Ltd. in 2012. In preparation of its initial public offering (“IPO”) in the United States, the Company underwent a series of restructuring in 2019 (the “Restructuring”) in order to establish the Company as the parent company and Beijing Quhuo Technology Co., Ltd. (“Beijing Quhuo” or the “VIE”) as the variable interest entity of the Company. On June 14, 2019, the Company incorporated a wholly-owned subsidiary, Quhuo Investment Limited (“Quhuo BVI”) in the British Virgin Islands (“BVI”). On June 17, 2019, the Company incorporated another wholly-owned subsidiary, Quhuo Technology Investment (Hong Kong) Limited (“Quhuo HK”) in Hong Kong. On July 31, 2019, the Company incorporated a wholly-owned subsidiary, Beijing Quhuo Information Technology Co., Ltd. (“WFOE”) in the PRC.
As PRC laws and regulations prohibit and restrict foreign ownership of internet value-added businesses, the Company operates its business primarily through the VIE and the subsidiaries of the VIE. The Company, through the WFOE, entered into power of attorney agreements and an exclusive call option agreement with the nominee shareholders of the VIE that gave the WFOE the power to direct the activities that most significantly affect the economic performance of the VIE and to acquire the equity interests in the VIE when permitted by the PRC laws, respectively. Certain exclusive agreements were entered into with the VIE through the WFOE, which obligate the WFOE to absorb a majority of the risk of loss from the VIE’s activities and entitle the WFOE to receive a majority of its residual returns. In addition, the WFOE entered into an equity interest pledge agreement for equity interests in the VIE held by the nominee shareholders of the VIE. The Company also agreed to provide unlimited financial support to the VIE for its operations.
Despite the lack of technical majority ownership, the Company has effective control of the VIE through the VIE Agreements and a parent-subsidiary relationship exists between the Company and the VIE. Through the VIE Agreements, the shareholders of the VIE effectively assigned all of their voting rights underlying their equity interest in the VIE to the Company. In addition, through the other exclusive agreements, which consist of exclusive call option agreement, exclusive business cooperation agreement, and equity interest pledge agreement, the Company, through its wholly-owned subsidiaries in the PRC, have the right to receive economic benefits from the VIE that could be potentially significant to the VIE. Lastly, through the financial support undertaking letter, the Company has the obligation to absorb losses of the VIE that could potentially be significant to the VIE. Therefore, the Company is considered the primary beneficiary of the VIE and consolidates the VIE and its consolidated subsidiaries as required by SEC Regulation S-X Rule 3A-02 and Accounting Standard Codification (“ASC”) topic 810, Consolidation (“ASC 810”).
6
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
1.Organization, Consolidation and Principal Activities (continued)
Creditors of the VIE have no recourse to the general credit of the Company, who is the primary beneficiary of the VIE, through its
| | As of December 31, | | As of June 30, | ||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
ASSETS: |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
| |
| |
| |
Restricted cash |
| |
| |
| |
Accounts receivable |
| |
| |
| |
Prepayments and other current assets |
| |
| |
| |
Amounts due from related party |
| |
| — |
| — |
Total current assets |
| |
| |
| |
Non-current assets: |
|
|
|
|
|
|
Property and equipment, net |
| |
| |
| |
Intangible assets, net |
| |
| |
| |
Operating lease right-of-use assets, net |
| |
| |
| |
Goodwill |
| |
| |
| |
Deferred tax assets |
| |
| |
| |
Other non-current assets |
| |
| |
| |
Total non-current assets |
| |
| |
| |
Total assets |
| |
| |
| |
LIABILITIES: |
| |
| |
| |
Current liabilities: |
| |
| |
| |
Accounts payable |
| |
| |
| |
Accrued expenses and other current liabilities |
| |
| |
| |
Short-term debt |
| |
| |
| |
Short-term lease liabilities |
| |
| |
| |
Inter-group balance due to Parent and WFOE |
| |
| |
| |
Amounts due to related party |
| — |
| |
| |
Total current liabilities |
| |
| |
| |
Non-current liabilities: |
| |
| |
| |
Deferred tax liabilities |
| |
| |
| |
Long-term debt |
| |
| |
| |
Long-term lease liabilities |
| |
| |
| |
Other non-current liabilities |
| |
| |
| |
Total non-current liabilities |
| |
| |
| |
Total liabilities |
| |
| |
| |
The VIE’s net asset balance was RMB
7
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
1.Organization, Consolidation and Principal Activities (continued)
The table sets forth the results of operations of the VIE included in the Company’s consolidated statements of comprehensive loss for the six months ended June 30, 2023 and 2024, respectively:
|
| Six Months Ended June 30, | ||||
| | 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
Revenue |
| |
| |
| |
Net income/(loss) |
| |
| ( |
| ( |
The table sets forth the cash flows of the VIE included in the Company’s consolidated statements of cash flows for the six months ended June 30, 2023 and 2024, respectively:
| | Six Months Ended June 30, | ||||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
Net cash used in operating activities |
| ( |
| ( |
| ( |
Net cash (used in)/provided by investing activities |
| ( |
| |
| |
Net cash provided by/(used in) financing activities |
| | | ( |
| ( |
Effect of exchange rate changes on cash |
| |
| — |
| — |
Net decrease in cash |
| ( |
| ( |
| ( |
2.Summary of Significant Accounting Policies
Basis of presentation
The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2023. Accordingly, these unaudited interim condensed consolidated financial statements do not include all information and footnotes required by U.S. GAAP for annual financial statements.
In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, operating results and cash flows of the Company for each of the periods presented. The results of operations for the six months ended June 30, 2024 are not necessarily indicative of results to be expected for any other interim period or for the full year of 2024. The consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements at that date but does not include all of the disclosures required by U.S. GAAP for annual financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2023.
Principles of consolidation
The consolidated financial statements include the financial statements of the Company, its subsidiaries, the VIE and the subsidiaries of the VIE. All significant inter-company transactions and balances have been eliminated upon consolidation.
8
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
2.Summary of Significant Accounting Policies (continued)
Use of estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and assumptions reflected in the Company’s consolidated financial statements include, but are not limited to, allowance for doubtful accounts for accounts receivable, fair value of short-term investment, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) applied in lease liabilities, impairment of long-lived assets, intangible assets and goodwill, purchase price allocation and fair value contingent consideration with respect to business combinations, valuation allowance for deferred tax assets, share-based compensation and fair value of intangible assets acquired associated with non-monetary transactions. Management bases the estimates on historical experience and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could materially differ from those estimates.
Foreign currency
The functional currency of the Company, Quhuo BVI and Quhuo HK and Quhuo International is the United States Dollars (“US$”). The functional currency of WFOE, the VIE and subsidiaries of the VIE located in the PRC is Renminbi (“RMB”). The Company uses the RMB as its reporting currency.
Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Exchange gains and losses resulting from remeasurement are included in the consolidated statements of comprehensive loss.
The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive loss, a component of shareholders’ equity.
Convenience translation
Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB
Cash, cash equivalents and restricted cash
Cash and cash equivalents primarily consist of cash on hand, demand deposits and time deposits which are highly liquid. The Company considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use.
Restricted cash mainly represents cash reserved in a bank account for legal liability.
9
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
2.Summary of Significant Accounting Policies (continued)
Accounts receivable and allowance for doubtful accounts
Accounts receivable are carried at net realizable value. The Company’s accounts receivable are within the scope of ASC Topic 326. The Company has identified the relevant risk characteristics of accounts receivable which include size, type of the services or the products the Company provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Company considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the life - time expected credit losses. Additionally, external data and macroeconomic factors are also considered. This is assessed at each half year based on the Company’s specific facts and circumstances.
Short-term investments
Short-term investments consist of investments in structured notes with original maturities of greater than three months, but less than twelve months and investment in alternative investment fund, which is measured using the net asset value (NAV) per share as a practical expedient. The investment in the fund is redeemable on demand, subject to
Fair value measurements
Financial instruments of the Company primarily include cash, short-term investments, accounts receivable, other receivables, accounts payable and accrued liabilities, other receivables, amounts due from and due to related parties, long-term investments, deposits, equity consideration payable, contingent consideration payable, short-term debt and long-term debt. The Company applies ASC 820, Fair Value Measurements and Disclosures (‘‘ASC 820’’), in measuring fair value. ASC 820 defines fair value, establishes a framework for measuring fair value and requires disclosures to be provided on fair value measurement. The short-term investments are measured at fair value. Equity method investments have no quoted market prices and it is not practicable to estimate their fair value without incurring excessive costs. The carrying amounts of the remaining financial instruments, except for long-term debt and deposits, approximate their fair values because of their short-term maturities.
ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1-Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2-Include other inputs that are directly or indirectly observable in the marketplace.
Level 3-Unobservable inputs which are supported by little or no market activity.
ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.
Leases
The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Group to not reassess 1) whether expired or existing contracts are or contain leases, 2) lease classification for any expired or existing leases as of the adoption date and 3) initial direct costs for existing leases as of the adoption date. The Company also made an accounting policy election to exempt short-term leases of 12 months or less form balance sheet recognition requirements associated with the new standard. The Company will recognize fixed rental payments for these short-term leases as a straight-line expense over the lease.
10
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
2.Summary of Significant Accounting Policies (continued)
Leases (continued)
The Company leases offices and service stations to support its on-demand delivery solution services and leases vehicles to individual drivers for ride-hailing solution services. The Company classifies these leases as operating leases in accordance with ASC 842-10-25-2. The Company records an operating lease right-of-use (“ROU”) asset and lease liability based on the present value of the lease payments over the lease term at the commencement date. The Company excludes variable lease payments not dependent on an index or rate from the ROU asset and lease liability calculations and are recognize such amounts as expense in the period which it incurs the obligation for those. As the rate implicit in the Company’s leases are not readily available, the company estimates its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate reflects the fixed rate at which the Company could borrow on a collateralized basis, the amount of the lease payments in the same currency, for a similar term and in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. The Company recognize operating lease expense on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise.
Income taxes
The Company follows the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes (‘‘ASC 740’’). Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rate is recognized in tax expense in the period that includes the enactment date of the change in tax rate.
The Company accounted for uncertainties in income taxes in accordance with ASC 740. Interest and penalties arising from underpayment of income taxes shall be computed in accordance with the related PRC tax law. The amount of interest expense is computed by applying the applicable statutory rate of interest to the difference between the tax position recognized and the amount previously taken or expected to be taken in a tax return. Interest and penalties recognized in accordance with ASC 740 are classified in the consolidated statements of comprehensive loss as income tax expense.
11
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
3.Revenues
The following table presents the Company’s revenues disaggregated by revenue category.
| | Six months ended June 30, | ||||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
Revenue |
|
|
|
|
|
|
On-demand delivery solution services |
| |
| |
| |
Mobility service solutions |
| |
| |
| |
Housekeeping services |
| |
| |
| |
Others |
| | | |
| |
Total revenues |
| |
| |
| |
4.Short-term investments
The Company’s short-term investments included structured notes with maturities of one year or less and investment in alternative investment fund, which is measured using the NAV per share as a practical expedient. The following is a summary of the Company’s short-term investments:
|
| As of December 31, | | As of June 30, | ||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
Investment in fund | | |
| |
| |
For the six months ended June 30, 2023 and 2024, the Group recognized other income related to its structured notes RMB
For the six months ended June 30, 2023 and 2024, the Group recognized unrealized loss on fair value change of the investment of RMB(
5.Accounts Receivable
|
| As of December 31, | | As of June 30, | ||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
Accounts receivable | | |
| |
| |
Less: allowance for doubtful accounts | | ( |
| ( |
| ( |
Accounts receivable, net | | |
| |
| |
The following table presents the movement in the allowance for doubtful accounts:
|
| As of December 31, | | As of June 30, | ||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
Balance at beginning of year | | ( |
| ( |
| ( |
Reversals | | | | | | |
Balance at end of year | | ( |
| ( |
| ( |
Substantially all of the Company’s accounts receivable as of December 31, 2023 and June 30, 2024 are aged within
12
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
6.Leases
The Company’s operating leases mainly related to our office premises and on-demand delivery service stations. The total lease cost for the six months ended June 30, 2023 and 2024 was RMB
The operating cash flows used in operating leases was RMB
7.Other Non-current Assets
Other non-current assets consisted of the following:
|
| As of December 31, | | As of June 30, | ||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
Rental and industry customer deposits (1) | | |
| |
| |
Prepayments | | |
| |
| |
Long-term investments | | |
| |
| |
Total other non-current assets | | |
| |
| |
| (1) | The Company’s rental deposits are mainly paid to landlords for its various office spaces and are refundable upon termination of the leases. Industry customer deposits consist of refundable deposits paid to industry customers and are refundable upon termination of contracts with each customer. The Company evaluated the recoverability of the deposits periodically and recorded an allowance of |
8.Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
|
| As of December 31, | | As of June 30, | ||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
Amounts due to third-parties | | |
| |
| |
Income tax payables | | |
| |
| |
Other tax payables | | |
| |
| |
Salary and welfare payables | | |
| |
| |
Deposits received from ride-hailing drivers | | |
| |
| |
Purchase consideration payable | | |
| |
| |
Others | | |
| |
| |
Total | | |
| |
| |
13
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
9.Debt
Short-term Debt
The following table presents the Company’s outstanding short-term debt as of December 31, 2023 and June 30, 2024:
|
| Annual |
| |
| As of |
| As of | ||
Name | | interest rates | | Term | | December 31, 2023 | | June 30, 2024 | ||
| | | | | | RMB | | RMB |
| US$ |
Short-term loans |
|
|
|
|
|
|
|
| | |
Short-term bank loans |
| |
| |
| | | | ||
Long-term debt, current portion |
| |
| |
| | | | ||
Total |
| |
|
|
|
| | | | |
Short-term bank loans consist of secured RMB denominated borrowings from financial institutions in the PRC that are repayable within one year. As of December 31, 2023 and June 30, 2024, the repayments of all short-term loans are guaranteed by certain accounts receivables, or specific subsidiaries of the Company.
Long-term debt
The following table presents the Company’s long-term debt as of December 31, 2023 and June 30, 2024:
|
| Annual |
| |
| As of |
| As of | ||
Name | | interest rates | | Term | | December 31, 2023 | | June 30, 2024 | ||
| | | | | | RMB | | RMB |
| US$ |
Long-term debt, current portion |
| |
| |
| | | | ||
Long-term debt, non-current portion |
| |
| |
| | | | ||
Total |
| |
|
|
|
| | | | |
In December 2022, the Company entered into an agreement with a third party pursuant to which the Company borrowed RMB
In May 2023 and December 2023, the Company entered into
The weighted average interest rate for all the outstanding borrowings was approximately
14
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
10.Income Taxes
The Company is incorporated in the Cayman Islands and conducts its primary business operations through subsidiaries and VIEs in the PRC. It also has intermediate holding companies in the BVI and Hong Kong. Under the current laws of the Cayman Islands and BVI, the Company is not subject to tax on income nor capital gains. Additionally, upon payments of dividends by the Company to its shareholders, neither Cayman Islands nor BVI will impose withholding taxes. Under the Hong Kong tax laws, subsidiaries in Hong Kong are subject to the Hong Kong corporate income tax rate at
The Company’s subsidiaries, VIE and VIE’s subsidiaries in the PRC are subject to the statutory rate of
The Company recorded a tax benefit of RMB
11.Loss Per Share
The rights of the holder of Class A and Class B ordinary shares were identical for all periods presented, except with respect to voting and conversion rights, and therefore, the undistributed earnings were allocated on a proportionate basis and the resulting earnings per share attributable to ordinary shareholders were the same for both Class A and Class B ordinary shares on an individual or combined basis. The following table sets forth the computation of basic net loss per share for the following periods:
| | Six Months End June 30, | ||||
|
| 2023 |
| 2024 |
| 2024 |
|
| RMB |
| RMB |
| US$ |
Basic Loss Per Share |
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
Net loss attributable to ordinary shareholders | | ( |
| ( | | ( |
Denominator: |
|
|
| | |
|
Weighted average number of shares outstanding |
| |
| | | |
Loss per share - basic |
| ( |
| ( | | ( |
For the periods presented herein, the computation of basic loss per share using the two-class method is not applicable as the Company is in a net loss position and the participating securities do not have contractual rights and obligations to share in the losses of the Company. The effects of all outstanding options and other participating securities were also excluded from the computation of diluted loss per share as their effects would be anti-dilutive during the periods.
15
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
12.Commitments and Contingencies
Contingencies
In the ordinary course of business, the Company may from time to time be involved in legal proceedings and litigation relating to injuries caused by workforce and labor arbitration cases brought by disgruntled workforce, among others. The Company records a liability when the Company believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. With respect to the Company’s outstanding legal matters, based on its current knowledge, the Company believes that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties.
13.Related Party Transactions
Names of the related party |
| Relationship with the Company |
|
Hainan Huiliu Tianxia Network Technology Co., Ltd.(“Hainan Huiliu”) | | |
Amounts due from/due to related party as of December 31, 2023 and June 30, 2024 were as follows:
| | As of December 31, | | As of June 30, | ||
|
| 2023 |
| 2024 |
| 2024 |
|
| RMB |
| RMB |
| US$ |
Amounts due from related party: |
|
|
|
|
|
|
Hainan Huiliu |
| |
| — |
| — |
Amounts due to related party: | | | | | | |
Hainan Huiliu |
| — |
| |
| |
Transactions with related party for the June 30, 2023 and 2024:
|
| Six Months End June 30, | ||||
|
| 2023 |
| 2024 |
| 2024 |
|
| RMB |
| RMB |
| US$ |
Labor consulting service received from: |
|
|
|
|
|
|
Hainan Huiliu |
| |
| |
| |
The Company received labor recruitment services from Hainan Huiliu recorded labor recruitment cost in cost of revenues.
14.Restricted Net Assets
Under PRC laws and regulations, there are restrictions on the Company’s PRC subsidiaries and VIE with respect to transferring certain of their net assets to the Company either in the form of dividends, loans, or advances. Amounts restricted include paid-in capital, statutory reserve of the Company’s PRC subsidiaries and pledged or collateralized accounts receivable and property and equipment of the VIE, totaling approximately RMB
16
QUHUO LIMITED
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”),
except for number of shares and per share data)
15.Subsequent Events
On July 1, 2024, the Company entered into equity acquisition agreements with minority shareholders of Quhuo International Trade (HK) Limited, proposed to acquire an aggregate of
Specifically, the Company (1) entered into an equity acquisition agreement with Lida Global Limited, proposed to acquire
All convertible notes were issued and made effective as of July 1, 2024, and converted to Class A ordinary shares on August 8, 2024, which resulting in an issuance of a total of
17
Exhibit 99.2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This management’s discussion and analysis is designed to provide you with a narrative explanation of our financial condition and results of operations for the six months ended June 30, 2023 and 2024. This section should be read in conjunction with our unaudited condensed consolidated financial statements for the six-month periods ended June 30, 2023 and 2024 and related notes thereto, or the Unaudited Condensed Consolidated Financial Statements, included as Exhibit 99.1 to the report on Form 6-K to which this discussion is included. We also recommend that you read our management’s discussion and analysis and our audited consolidated financial statements for the fiscal year 2023 and the notes thereto, which appear in our annual report on Form 20-F for the year ended December 31, 2023, or the Annual Report, filed with the U.S. Securities and Exchange Commission, or the SEC, on April 17, 2024.
Unless otherwise indicated or the context otherwise requires, all references to “our company,” “we,” “our,” “ours,” “us” or similar terms refer to Quhuo Limited, its subsidiaries, and, in the context of describing our operations and consolidated financial information, its VIE and subsidiaries of its VIE. “VIE” refers to Beijing Quhuo Technology Co., Ltd.
All such financial statements were prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. We have made rounding adjustments to some of the figures included in this management’s discussion and analysis. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that precede them. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors.
Key Operating Metrics
In the six months ended June 30, 2024, the number of average monthly active workers on our platform was approximately 54,700, representing an 8.4% year-over-year decrease.
We provided services in 986 business circles across 132 cities nationwide as of June 30, 2024, as compared to 1,082 business circles across 123 cities nationwide as of December 31, 2023.
Results of Operations
The following table sets forth a summary of our unaudited condensed consolidated statements of operations, both in absolute amount and as a percentage of our revenues, for the periods indicated. This information has been derived from and should be read together with our Unaudited Condensed Consolidated Financial Statements. The results of operations in any period are not necessarily indicative of the results that may be expected for any future period.
| | Six Months Ended June 30, | ||||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
| | (in thousands) | ||||
Revenues |
| 1,736,317 |
| 1,619,938 |
| 222,911 |
Cost of revenues |
| (1,669,515) |
| (1,595,192) |
| (219,506) |
General and administrative |
| (81,611) |
| (70,868) |
| (9,752) |
Research and development |
| (6,645) |
| (4,939) |
| (680) |
Gain on disposal of assets, net |
| 8,916 |
| 7,022 |
| 966 |
Operating loss |
| (12,538) |
| (44,039) | | (6,061) |
Interest income |
| 742 |
| 258 |
| 36 |
Interest expense |
| (2,323) |
| (2,301) |
| (317) |
Other income/(loss), net |
| 6,034 |
| (3,055) |
| (420) |
Loss before income tax |
| (8,085) |
| (49,137) |
| (6,762) |
Income tax benefit |
| 2,395 |
| 2,622 |
| 361 |
Net loss |
| (5,690) |
| (46,515) |
| (6,401) |
Net income attributable to non-controlling interests |
| (3,958) | | (6,020) |
| (828) |
Net loss attributable to ordinary shareholders of Quhuo Limited |
| (9,648) | | (52,535) |
| (7,229) |
Loss per share: |
|
|
|
|
|
|
Basic |
| (0.17) |
| (0.63) |
| (0.09) |
Diluted |
| (0.17) |
| (0.63) |
| (0.09) |
Shares used in loss per share computation: |
| |
| |
| |
Basic |
| 56,441,811 |
| 83,289,067 |
| 83,289,067 |
Diluted |
| 56,441,811 |
| 83,289,067 |
| 83,289,067 |
Other comprehensive loss: |
| |
| |
| |
Foreign currency translation adjustment |
| 3,555 |
| 1,850 |
| 255 |
Comprehensive loss |
| (2,135) |
| (44,665) |
| (6,146) |
Comprehensive income attributable to non-controlling interests |
| (3,958) |
| (6,020) |
| (828) |
Comprehensive loss attributable to ordinary shareholders of Quhuo Limited |
| (6,093) |
| (50,685) |
| (6,974) |
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Revenues
Total revenues decreased by 6.7% from RMB1,736.3 million in the six months ended June 30, 2023 to RMB1,619.9 million (US$222.9 million) in the six months ended June 30, 2024 due to the following reasons.
| ● | Revenues from on-demand delivery solutions were RMB1,499.1 million (US$206.3 million), representing a slight decrease of 9.1% from RMB1,649.6 million in the six months ended June 30, 2023, primarily because we optimized our business by disposing several inferior business districts, which leads to a decrease in revenue scale. |
| ● | Revenues from mobility service solutions, consisting of shared-bike maintenance, ride-hailing and vehicle export solutions, were RMB100.5 million (US$13.8 million), representing a remarkable increase of 71.7% from RMB58.5 million in the six months ended June 30, 2023, primarily due to the growth of our vehicle export solutions, which generated revenue of RMB58.6 million. |
| ● | Revenues from housekeeping and accommodation solutions and other services were RMB20.4 million (US$2.8 million), representing a decrease of 27.8% from RMB28.2 million in the six months ended June 30, 2023, primarily due to the transition of business model in hotel service. |
Cost of revenues
Cost of revenues was RMB1,595.2 million (US$219.5 million), representing a decrease of 4.5% year-over-year, primarily attributable to the decreases in our labor cost and service fees paid to team leaders, in line with the decrease in revenue from on - demand delivery solutions.
General and administrative expenses
General and administrative expenses were RMB70.9 million (US$9.8 million), representing a decrease of 13.2% from RMB81.6 million in the six months ended June 30, 2023, primarily due to the decreases in (1) professional service fees from RMB22.2 million in the first half of 2023 to RMB14.5 million (US$2.0 million) in the first half of 2024, (2) welfare and business development expenses and office expenses from RMB17.3 million in the first half of 2023 to RMB12.4 million (US$1.7 million) in the first half of 2024, and (3) share-based compensation expenses from RMB3.9 million in the first half of 2023 to nil in the first half of 2024. All of the above are owing to our expense control through technological optimization.
Research and development expenses
Research and development expenses were RMB4.9 million (US$0.7 million), representing a decrease of 25.7% from RMB6.6 million in the six months ended June 30, 2023, primarily due to the decrease in the average compensation level for our research and development personnel as we restructured our R&D team.
Gain on disposal of assets, net
We recorded gain on disposal of assets, net of RMB8.9 million and RMB7.0 million (US$1.0 million) in the six months ended June 30, 2023 and 2024, respectively, primarily due to the transfer of certain customer relationships related to our on-demand delivery solutions to third parties.
Interest income
Our interest income was RMB0.7 million and RMB0.3 million (US$36,000) in the six months ended June 30, 2023 and 2024, respectively, primarily relating to our bank deposits and structured notes.
Interest expense
Our interest expense remained stable at RMB2.3 million (US$0.3 million) in the six months ended June 30, 2023 and 2024, respectively, primarily relating to the stability in our average short-term bank borrowings.
Other income/(loss), net
We recorded other loss, net, of RMB3.1 million (US$0.4 million) in the six months ended June 30, 2024, compared to other income, net, of RMB6.0 million in the six months ended June 30, 2023, primarily due to the decrease in fair value change of investment in a mutual fund.
Income tax benefit
We recorded income tax benefit of RMB2.6 million (US$0.4 million) in the six months ended June 30, 2024, as compared to income tax benefit of RMB2.4 million in the six months ended June 30, 2023, primarily due to the increase in deferred tax asset benefit.
Net loss
As a result of the foregoing, we had net loss of RMB5.7 million and RMB46.5 million (US$6.4 million) in the six months ended June 30, 2023 and 2024, respectively.
Adjusted net loss
Adjusted net loss was RMB46.5 million (US$6.4 million), as compared to adjusted net loss of RMB1.8 million in the first half of 2023.
Adjusted EBITDA
Adjusted EBITDA loss was RMB34.8 million (US$4.8 million), as compared to adjusted EBITDA of RMB11.1 million in the first half of 2023.
Non-GAAP Financial Measure
Quhuo uses adjusted net income/(loss) and adjusted EBITDA, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income/(loss) represents net income/(loss) before share-based compensation expenses. Adjusted EBITDA represents adjusted net income/(loss) before income tax benefit/(expense), amortization, depreciation and interest. Quhuo believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of share-based compensation expenses, income tax benefits or expenses, amortization, depreciation and interest. Quhuo believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other performance measures or as an indicator of Quhuo’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Quhuo encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Quhuo mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The following table sets forth a reconciliation of our net loss to adjusted net loss and adjusted EBITDA, respectively.
QUHUO LIMITED
Reconciliation of GAAP and Non-GAAP Results
| | For the Six Months Ended | ||||
|
| June 30, 2023 |
| June 30, 2024 |
| June 30, 2024 |
| | (RMB) | | (RMB) | | (US$) |
| | (in thousands) | ||||
Net loss |
| (5,690) |
| (46,515) |
| (6,401) |
Add: Share-based Compensation |
| 3,853 |
| — |
| — |
| | | | | | |
Adjusted net loss |
| (1,837) |
| (46,515) |
| (6,401) |
Add: | | | | | | |
Income tax benefit |
| (2,395) |
| (2,622) |
| (361) |
Depreciation |
| 2,927 |
| 2,676 |
| 368 |
Amortization |
| 10,128 |
| 9,385 |
| 1,291 |
Interest |
| 2,323 |
| 2,301 |
| 317 |
| | | | | | |
Adjusted EBITDA |
| 11,146 |
| (34,775) |
| (4,786) |
Liquidity and Capital Resources
Our principal sources of liquidity have been cash generated from our operations and external financing, including the proceeds we received from our initial public offering, proceeds from exercise of share options and loans from commercial banks. As of June 30, 2024, we had RMB39.9 million (US$5.5 million) in cash. Our cash consists primarily of cash on hand, demand deposits and time deposits which are highly liquid. We believe that our current cash, cash equivalents and restricted cash, the available credit under our existing credit facilities, and our anticipated cash flows from operations will be sufficient to meet our anticipated working capital requirements and capital expenditures in the ordinary course of business for the next 12 months. We may, however, need additional capital for business expansion in the future.
As a holding company with no material operations of our own, we conduct our operations primarily through our consolidated VIE and its subsidiaries. As of June 30, 2024, 59.9% of our cash were held by the VIE and its subsidiaries and denominated in Renminbi. Although we consolidate the results of the VIE, we only have access to the assets and earnings of the VIE through our contractual arrangements with the VIE and its nominee shareholders.
We had net loss of RMB5.7 million and negative cash flows from operations of RMB22.4 million for the six months ended June 30, 2023. We had net loss of RMB46.5 million (US$6.4 million) and cash outflows from operations of RMB41.5 million (US$5.7 million) for the six months ended June 30, 2024. We had positive working capital, which equals the result of current assets minus current liabilities, of RMB220.3 million and RMB242.0 million (US$33.3 million) as of June 30, 2023 and 2024, respectively. The total outstanding balance of our short-term bank borrowings as of June 30, 2024 was RMB101.3 million (US$13.9 million).
While there can be no assurance that we will be able to refinance our short-term bank borrowings as they become due, historically, we have renewed or rolled over most of our short-term bank loans upon the maturity of such loans and believe we will continue to be able to do so.
We intend to finance our future working capital requirements and capital expenditures from cash generated from operating activities and financing activities, including the net proceeds we received from our initial public offering. To utilize the proceeds we received from our initial and any subsequent public offerings, we may make additional capital contributions to our PRC subsidiaries, the VIE and subsidiaries of the VIE and make capital contributions to these new PRC subsidiaries, or make loans to the PRC subsidiaries. However, most of these uses are subject to PRC regulations. Foreign direct investment and loans must be approved by and/or registered with SAFE and its local branches. The total amounts of loans we can make to our PRC subsidiary cannot exceed statutory limits and must be registered with the local counterpart of SAFE. The statutory limit for the total amount of foreign debts of a foreign-invested company is the difference between the amount of total investment as approved by the Ministry of Commerce or its local counterpart and the amount of registered capital of such foreign-invested company.
A substantial portion of our future revenues are likely to continue to be in the form of Renminbi. Under existing PRC foreign exchange regulations, Renminbi may not be converted into foreign exchange for current account items, including profit distributions, interest payments and trade- and service-related foreign exchange transactions without prior SAFE approval by following certain routine procedural requirements. However, current PRC regulations permit our PRC subsidiary to pay dividends to us only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. Our PRC subsidiary is required to set aside at least 10% of its after-tax profits after making up previous years’ accumulated losses each year, if any, to fund certain reserve funds until the total amount set aside reaches 50% of its registered capital. These reserves may not be distributed as cash dividends.
We may require additional cash resources due to changing business conditions or other future developments, including acquisitions or investments we may decide to selectively pursue. If our existing cash resources are insufficient to meet our requirements, we may seek to issue equity or debt securities or obtain credit facilities. The issue of additional equity securities, including convertible debt securities, would result in further dilution to our shareholders. The incurrence of indebtedness would result in increased fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in the amounts we need or on terms acceptable to us, if at all. If we are unable to obtain additional equity or debt financing as required, our business operations and prospects may suffer.
The following table sets forth a summary of our unaudited condensed consolidated statement of cash flows for the periods indicated:
| | Six Months Ended June 30, | ||||
|
| 2023 |
| 2024 |
| 2024 |
| | RMB | | RMB | | US$ |
| | (in thousands) | ||||
Net cash used in operating activities |
| (22,364) |
| (41,488) |
| (5,709) |
Net cash generated from investing activities |
| 5,481 |
| 11,102 |
| 1,528 |
Net cash generated from financing activities |
| 30,280 |
| 24,636 |
| 3,390 |
Effect of exchange rate changes on cash and restricted cash |
| 770 |
| 138 |
| 19 |
Net increase/(decrease) in cash and restricted cash |
| 14,167 |
| (5,612) |
| (772) |
Cash and restricted cash at beginning of the year |
| 101,023 |
| 46,456 |
| 6,393 |
Cash and restricted cash at end of the year |
| 115,190 |
| 40,844 |
| 5,621 |
Operating Activities
Net cash used in operating activities in the six months ended June 30, 2024 was RMB41.5 million (US$5.7 million), primarily due to a net loss of RMB46.5 million (US$6.4 million), adjusted for (1) certain non-cash items, mainly including amortization of RMB9.4 million (US$1.3 million) and changes in fair value of short-term investment of RMB4.5 million (US$0.6 million), and (2) changes in certain working capital items that negatively impact the cash flow from operating activities, mainly including a decrease of RMB45.6 million (US$6.3 million) in accrued expenses and other current liabilities, an increase of RMB7.9 million (US$1.1 million) in prepayments and other current assets, and a decrease of RMB4.8 million (US$0.7 million) in accounts payable, partially offset by changes in certain working capital items that positively impact the cash flow from operating activities, mainly including a decrease of RMB32.9 million (US$4.5 million) in accounts receivable, and an increase of RMB18.3 million (US$2.5 million) in other non-current liabilities.
Net cash used in operating activities in the six months ended June 30, 2023 was RMB22.4 million (US$3.1 million), primarily due to a net loss of RMB5.7 million (US$0.8 million), adjusted for (1) certain non-cash items, mainly including amortization of RMB10.1 million (US$1.4 million) and share-based compensation expenses of RMB3.9 million (US$0.5 million), and (2) changes in certain working capital items that negatively impact the cash flow from operating activities, mainly including a decrease of RMB21.4 million (US$3.0 million) in accrued expenses and other current liabilities, an increase of RMB5.9 million (US$0.8 million) in other non-current assets, and an increase of RMB5.6 million (US$0.8 million) in prepayments and other current assets, partially offset by changes in certain working capital items that positively impact the cash flow from operating activities, mainly including an increase of RMB21.1 million (US$3.0 million) in accounts payable.
Investing Activities
Net cash provided by investing activities in the six months ended June 30, 2024 was RMB11.1 million (US$1.5 million), primarily due to proceeds from disposals of intangible assets of RMB12.4 million (US$1.7 million), partially offset by acquisition of intangible assets of RMB2.0 million (US$0.3 million).
Net cash provided by investing activities in the six months ended June 30, 2023 was RMB5.5 million (US$0.8 million), primarily due to proceeds from sales of short-term investments of RMB62.5 million (US$8.6 million) and proceeds from disposals of intangible assets of RMB19.1 million (US$2.6 million), partially offset by purchase of short-term investments of RMB60.0 million (US$8.3 million) and acquisition of intangible assets of RMB18.5 million (US$2.5 million).
Financing Activities
Net cash provided by financing activities in the six months ended June 30, 2024 was RMB24.6 million (US$3.4 million), primarily due to the proceeds from short-term loans of RMB304.0 million (US$41.8 million), and proceeds from issuance of RMB14.2 million (US$2.0 million), partially offset by repayments of short-term loans of RMB292.6 million (US$40.3 million).
Net cash provided by financing activities in the six months ended June 30, 2023 was RMB30.3 million (US$4.2 million), primarily due to the proceeds from short-term loans of RMB102.9 million (US$14.2 million), partially offset by repayments of short-term loans of RMB72.9 million (US$10.1 million).
Capital Expenditures
We made capital expenditures of RMB1.3 million and RMB0.4 million (US$49,000) in the six months ended June 30, 2023 and 2024, respectively. Our capital expenditures were mainly used for purchases of property and equipment, such as vehicles in connection with our ride-hailing solutions and electronic equipment. We will continue to make capital expenditures to meet the expected growth of our business.
Off-balance Sheet Arrangements
We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us.
Cautionary Statement Regarding Forward Looking Statements
We have made statements in this report that constitute forward-looking statements. Forward-looking statements involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “we believe,” “we intend,” “may,” “should,” “could” and similar expressions. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances or achievements expressed or implied by the forward-looking statements.
These forward-looking statements include statements about:
The ultimate correctness of these forward-looking statements depends upon a number of known and unknown risks and events. Many factors could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Consequently, you should not place undue reliance on these forward-looking statements.
The forward-looking statements speak only as of the date on which they are made, and, except as required by law; we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update this forward-looking information. Nonetheless, we reserve the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this interim report. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.
Exhibit 99.3
Quhuo Reports Unaudited Financial Results for the First Half of 2024
BEIJING, China, Aug 28, 2024 (PRNewswire) -- Quhuo Limited (NASDAQ: QH) (“Quhuo,” the “Company,” “we” or “our”), a leading gig economy platform focusing on local life services in China, today reported its unaudited financial results for the six months ended June 30, 2024.
Financial and Operational Highlights for the First Half of 2024
| ● | Revenues from mobility service solutions were RMB 100.5 million (US$13.8 million), representing an increase of 71.7% year-over-year. |
| ● | General and administrative expenses were RMB70.9 million (US$9.8 million), representing a decrease of 13.2% year-over-year. |
| ● | Quhuo International has signed service contracts for over 3,000 units of vehicles under its vehicle export solutions, of which 815 units have been shipped in the first half of 2024. |
| ● | The Company has expanded services to 132 cities nationwide, representing a year-over-year increase from 119 cities in the first half of 2023. |
Mr. Leslie Yu, Chairman and CEO of Quhuo, stated, “We are pleased to conclude that in the first half of 2024, our business growth remained strong, led by a 71.7% increase in revenue from our mobility solution. While the first quarter was impacted by seasonal factors, the second quarter saw a strong rebound, with profitability exceeding last year’s levels. We also made significant strides in operational efficiency, highlighted by a reduction in general and administrative expenses.
In response to global market trends and domestic policy shifts, our vehicle export solutions have experienced strong growth, quickly becoming a key driver of our overall expansion. Meanwhile, our housekeeping services and others have also shown consistent progress, steadily expanding market reach and further solidifying our presence in the market. Together, these developments are propelling us forward as we continue to adapt and grow.
Looking forward, we aim to further advance our housekeeping services within China, with upcoming partnerships with leading long-term rental platforms. We also see considerable growth potential in our vehicle export business, with expectations for increased revenue and shipments. With a strategic focus on global expansion, we are advancing our overseas technology initiatives, with on-demand delivery and ride-hailing services currently being piloted in select international cities. Through these developments, we aim to create greater commercial and social value.”
Unaudited Financial Results of the First Half of 2024 Compared to the First Half of 2023
Total revenues decreased by 6.7% from RMB1,736.3 million in the six months ended June 30, 2023 to RMB1,619.9 million (US$222.9 million) in the six months ended June 30, 2024 due to the following reasons.
| ● | Revenues from on-demand delivery solutions were RMB1,499.1 million (US$206.3 million), representing a slight decrease of 9.1% from RMB1,649.6 million in the six months ended June 30, 2023, primarily because we optimized our business by disposing several inferior business districts, which leads to a decrease in revenue scale. |
| ● | Revenues from mobility service solutions, consisting of shared-bike maintenance, ride-hailing and vehicle export solutions, were RMB100.5 million (US$13.8 million), representing a remarkable increase of 71.7% from RMB58.5 million in the six months ended June 30, 2023, primarily due to the growth of our vehicle export solutions, which generated revenue of RMB58.6 million. |
| ● | Revenues from housekeeping and accommodation solutions and other services were RMB20.4 million (US$2.8 million), representing a decrease of 27.8% from RMB28.2 million in the six months ended June 30, 2023, primarily due to the transition of business model in hotel service. |
Cost of revenues was RMB1,595.2 million (US$219.5 million), representing a decrease of 4.5% year-over-year, primarily attributable to the decreases in our labor cost and service fees paid to team leaders, in line with the decrease in revenue from on-demand delivery solutions.
General and administrative expenses were RMB70.9 million (US$9.8 million), representing a decrease of 13.2% from RMB81.6 million in the six months ended June 30, 2023, primarily due to the decreases in (1) professional service fees from RMB22.2 million in the first half of 2023 to RMB14.5 million (US$2.0 million) in the first half of 2024, (2) welfare and business development expenses and office expenses from RMB17.3 million in the first half of 2023 to RMB12.4 million (US$1.7 million) in the first half of 2024, and (3) share-based compensation expenses from RMB3.9 million in the first half of 2023 to nil in the first half of 2024. All of the above are owing to our expense control through technological optimization.
Research and development expenses were RMB4.9 million (US$0.7 million), representing a decrease of 25.7% from RMB6.6 million in the six months ended June 30, 2023, primarily due to the decrease in the average compensation level for our research and development personnel as we restructured our R&D team.
We recorded gain on disposal of assets, net of RMB8.9 million and RMB7.0 million (US$1.0 million) in the six months ended June 30, 2023 and 2024, respectively, primarily due to the transfer of certain customer relationships related to our on-demand delivery solutions to third parties.
Our interest income was RMB0.7 million and RMB0.3 million (US$36,000) in the six months ended June 30, 2023 and 2024, respectively, primarily relating to our bank deposits and structured notes.
Our interest expense remained stable at RMB2.3 million (US$0.3 million) for both the six months ended June 30, 2023 and 2024, respectively, primarily relating to the stability in our average short-term bank borrowings.
We recorded other loss, net, of RMB3.1 million (US$0.4 million) in the six months ended June 30, 2024, compared to other income, net, of RMB6.0 million in the six months ended June 30, 2023, primarily due to the decrease in fair value change of investment in a mutual fund.
We recorded income tax benefit of RMB2.6 million (US$0.4 million) in the six months ended June 30, 2024, as compared to income tax benefit of RMB2.4 million in the six months ended June 30, 2023, primarily due to the increase in deferred tax asset benefit.
As a result of the foregoing, we had net loss of RMB5.7 million and RMB46.5 million (US$6.4 million) in the six months ended June 30, 2023 and 2024, respectively.
Adjusted net loss was RMB46.5 million (US$6.4 million), as compared to adjusted net loss of RMB1.8 million in the first half of 2023.(1)
Adjusted EBITDA loss was RMB34.8 million (US$4.8 million), as compared to adjusted EBITDA of RMB11.1 million in the first half of 2023.(1)
CONFERENCE CALL
Quhuo will hold a conference call on Wednesday, August 28, 2024 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time on the same day) to discuss the financial results.
Dial-in details for the earnings conference call are as follows:
PARTICIPANT DIAL IN (TOLL FREE): | 1-888-346-8982 |
PARTICIPANT INTERNATIONAL DIAL IN: | 1-412-902-4272 |
Hong Kong Toll Free: | 800-905945 |
Hong Kong-Local Toll: | 852-301-84992 |
Mainland China Toll Free: | 4001-201203 |
Conference ID: | QUHUO |
Please dial in ten minutes before the call is scheduled to begin and provide the conference ID to join the call.
A replay of the conference call may be accessed by phone at the following numbers until September 04, 2024:
US Toll Free: | 1-877-344-7529 |
International Toll: | 1-412-317-0088 |
Canada Toll Free: | 855-669-9658 |
Replay Access Code: | 2435048 |
Additionally, a live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://ir.quhuo.cn/.
(1) | See “Use of Non-GAAP Financial Measures.” |
USE OF NON-GAAP FINANCIAL MEASURES
Quhuo has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP).
Quhuo uses adjusted net income/(loss) and adjusted EBITDA, which are non-GAAP financial measures, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted net income/(loss) represents net income/(loss) before share-based compensation expenses. Adjusted EBITDA represents adjusted net income/(loss) before income tax benefit/(expense), amortization, depreciation and interest. Quhuo believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of share-based compensation expenses, income tax benefits or expenses, amortization, depreciation and interest. Quhuo believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other performance measures or as an indicator of Quhuo’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Quhuo encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Quhuo mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The following table sets forth a reconciliation of our net loss to adjusted net loss and adjusted EBITDA, respectively.
QUHUO LIMITED
Reconciliation of GAAP and Non-GAAP Results
| | For the Six Months Ended | ||||
|
| June 30, 2023 |
| June 30, 2024 |
| June 30, 2024 |
| | (RMB) | | (RMB) | | (US$) |
| | (in thousands) | ||||
Net loss |
| (5,690) |
| (46,515) |
| (6,401) |
Add: Share-based Compensation |
| 3,853 |
| — |
| — |
| | | | | | |
Adjusted net loss |
| (1,837) |
| (46,515) |
| (6,401) |
Add: |
|
|
|
|
|
|
Income tax benefit |
| (2,395) |
| (2,622) |
| (361) |
Depreciation |
| 2,927 |
| 2,676 |
| 368 |
Amortization |
| 10,128 |
| 9,385 |
| 1,291 |
Interest |
| 2,323 |
| 2,301 |
| 317 |
| | | | | | |
Adjusted EBITDA |
| 11,146 |
| (34,775) |
| (4,786) |
EXCHANGE RATE INFORMATION
This press release contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for readers’ convenience. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2672 to US$1.00, the rate in effect as of June 28, 2024 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
ABOUT QUHUO LIMITED
Quhuo Limited (NASDAQ: QH) (“Quhuo” or the “Company”) is a leading gig economy platform focusing on local life services in China. Leveraging Quhuo+, its proprietary technology infrastructure, Quhuo is dedicated to empowering and linking workers and local life service providers and providing end-to-end operation solutions for the life service market. The Company currently provides multiple industry-tailored operational solutions, primarily including on-demand delivery solutions, mobility service solutions, housekeeping and accommodation solutions, and other services, meeting the living needs of hundreds of millions of families in the communities.
With the vision of promoting employment, stabilizing income and empowering entrepreneurship, Quhuo explores multiple scenarios to promote employment of workers, provides, among others, safety and security and vocational training to protect workers, and helps workers plan their career development paths to realize their self-worth.
SAFE HARBOR STATEMENT
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Quhuo’s business development, financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Quhuo’s current expectations and involve risks and uncertainties. Quhuo’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties related to Quhuo’s abilities to (1) manage its growth and expand its operations, (2) address any or all of the risks and challenges in the future in light of its limited operating history and evolving business portfolios, (3) remain its competitive position in the on-demand food delivery market or further diversify its solution offerings and customer portfolio, (4) maintain relationships with major customers and to find replacement customers on commercially desirable terms or in a timely manner or at all, (5) maintain relationship with existing industry customers or attract new customers, (6) attract, retain and manage workers on its platform, and (7) maintain its market shares to competitors in existing markets and its success in expansion into new markets. Other risks and uncertainties are included under the caption “Risk Factors” and elsewhere in the Company’s filings with the Securities and Exchange Commission, including, without limitation, the Company’s latest annual report on Form 20-F. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Quhuo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
For more information about Quhuo, please visit https://ir.quhuo.cn/.
CONTACTS:
Investor Relations
Quhuo Limited
E-mail: ir@meishisong.cn
QUHUO LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)
| | As of December 31, | | As of June 30, | | As of June 30, |
|
| 2023 |
| 2024 |
| 2024 |
| | (RMB) | | (RMB) | | (US$) |
Assets | | | | | | |
Current assets | | | | | | |
Cash |
| 45,185 |
| 39,930 |
| 5,495 |
Restricted cash |
| 1,271 |
| 914 |
| 126 |
Short-term investments |
| 68,378 |
| 64,014 |
| 8,809 |
Accounts receivable, net |
| 475,992 |
| 443,105 |
| 60,973 |
Prepayments and other current assets |
| 108,354 |
| 115,849 |
| 15,940 |
Amounts due from related party |
| 253 |
| — |
| — |
Total current assets |
| 699,433 |
| 663,812 |
| 91,343 |
| | | | | | |
Property and equipment, net |
| 14,635 |
| 11,869 |
| 1,633 |
Right-of-use assets, net |
| 6,217 |
| 8,048 |
| 1,107 |
Intangible assets, net |
| 82,818 |
| 69,248 |
| 9,529 |
Goodwill |
| 65,481 |
| 65,481 |
| 9,010 |
Deferred tax assets |
| 21,968 |
| 24,607 |
| 3,386 |
Other non-current assets |
| 141,384 |
| 138,209 |
| 19,018 |
Total non-current assets |
| 332,503 |
| 317,462 |
| 43,683 |
| | | | | | |
Total assets |
| 1,031,936 |
| 981,274 |
| 135,026 |
| | | | | | |
Liabilities, non-controlling interests and shareholders’ equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payables |
| 254,099 |
| 249,280 |
| 34,302 |
Accrued expenses and other current liabilities |
| 108,132 |
| 61,972 |
| 8,528 |
Short-term debt |
| 92,653 |
| 104,195 |
| 14,338 |
Short-term lease liabilities |
| 3,906 |
| 3,942 |
| 542 |
Amounts due to related party | | — | | 2,430 | | 334 |
Total current liabilities |
| 458,790 |
| 421,819 |
| 58,044 |
| | | | | | |
Long-term debt |
| 7,533 |
| 6,147 |
| 846 |
Long-term lease liabilities |
| 1,434 |
| 3,433 |
| 472 |
Deferred tax liabilities |
| 4,689 |
| 2,467 |
| 339 |
Other non-current liabilities |
| 54,212 |
| 72,554 |
| 9,984 |
Total non-current liabilities |
| 67,868 |
| 84,601 |
| 11,641 |
| | | | | | |
Total liabilities |
| 526,658 |
| 506,420 |
| 69,685 |
QUHUO LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
| As of December 31, |
| As of June 30, |
| As of June 30, |
| | 2023 | | 2024 | | 2024 |
| | (RMB) | | (RMB) | | (US$) |
Shareholders’ equity | | | | | | |
Ordinary shares |
| 43 |
| 46 |
| 6 |
Additional paid-in capital |
| 1,885,142 |
| 1,899,380 |
| 261,363 |
Statutory reserve |
| — |
| 14,994 |
| 2,063 |
Accumulated deficit | | (1,376,530) | | (1,444,059) | | (198,709) |
Accumulated other comprehensive loss |
| (2,466) |
| (616) |
| (85) |
Total Quhuo Limited shareholders’ equity |
| 506,189 |
| 469,745 |
| 64,638 |
Non-controlling interests |
| (911) |
| 5,109 |
| 703 |
Total shareholders’ equity |
| 505,278 |
| 474,854 |
| 65,341 |
| | | | | | |
Total liabilities and shareholders’ equity |
| 1,031,936 |
| 981,274 |
| 135,026 |
QUHUO LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)
| | For the Six Months Ended | ||||
|
| June 30, 2023 |
| June 30, 2024 |
| June 30, 2024 |
| | (RMB) | | (RMB) | | (US$) |
Revenues |
| 1,736,317 |
| 1,619,938 |
| 222,911 |
Cost of revenues |
| (1,669,515) |
| (1,595,192) |
| (219,506) |
General and administrative |
| (81,611) |
| (70,868) |
| (9,752) |
Research and development |
| (6,645) |
| (4,939) |
| (680) |
Gain on disposal of assets, net |
| 8,916 |
| 7,022 |
| 966 |
| | | | | | |
Operating loss |
| (12,538) |
| (44,039) |
| (6,061) |
| | | | | | |
Interest income |
| 742 |
| 258 |
| 36 |
Interest expense |
| (2,323) |
| (2,301) |
| (317) |
Other income/(loss), net |
| 6,034 |
| (3,055) |
| (420) |
Loss before income tax |
| (8,085) |
| (49,137) |
| (6,762) |
Income tax benefit |
| 2,395 |
| 2,622 |
| 361 |
Net loss |
| (5,690) |
| (46,515) |
| (6,401) |
| | | | | | |
Net income attributable to non-controlling interests |
| (3,958) |
| (6,020) |
| (828) |
Net loss attributable to ordinary shareholders of the Quhuo limited |
| (9,648) |
| (52,535) |
| (7,229) |
| | | | | | |
Non-GAAP Financial Data |
|
|
|
|
|
|
Adjusted net loss |
| (1,837) |
| (46,515) |
| (6,401) |
Adjusted EBITDA |
| 11,146 |
| (34,775) |
| (4,786) |
| | | | | | |
Loss per share for class A and class B ordinary shares |
|
|
|
|
|
|
Basic |
| (0.17) |
| (0.63) |
| (0.09) |
Diluted |
| (0.17) |
| (0.63) |
| (0.09) |
| | | | | | |
Shares used in loss per share computation: |
|
|
|
|
|
|
Basic |
| 56,441,811 |
| 83,289,067 |
| 83,289,067 |
Diluted |
| 56,441,811 |
| 83,289,067 |
| 83,289,067 |